FCA proposes standalone equity release qualification

The FCA is considering a standalone equity release qualification to give more customers access to the product, including through advisers.

The suggestion is part of a consultation on exam standards, which closes on 13 December.

The equity release qualification proposal follows discussions as part of the regulator’s work on competition in the mortgage market.

The consultation paper says: “Some stakeholders suggested that some IFAs may not be offering equity release because, before they can do so, they need to be appropriately qualified for a product (mortgages) that otherwise they have no interest in selling.”

The FCA is suggesting either a standalone equity release qualification or a way to achieve competency by topping up existing pensions or investment qualifications.

It adds: “We would like to get a better sense of the numbers of those without an appropriate mortgage qualification who would be interested in achieving the relevant appropriate qualification to sell equity release.”

However, nearly two-thirds of attendees at a Financial Service Expo session today said that advisers should not have easier access to any product area.

Sixty per cent of the audience said easier access was a bad idea.

Key Retirement technical director Dean Mirfin said the next six months in equity release would see rates keep falling and the market become more mainstream.

He added that, due to FCA rule changes, more serviceable lending options would emerge to further protect clients against default.

Recommended

Downsizing is a major component of the equity release sector but there are insufficient properties suitable for older people It is easy to focus on the younger end of the housing market when trying to fix age-old supply and affordability issues. Just as important, however, is ensuring the other end of the lending spectrum is […]

SimplyBiz Mortgages has added OneFamily to its equity release panel. OneFamily’s products include a voluntary payment product which lets up to 10 per cent of the capital be repaid annually. Its range also includes an interest roll-up product and the choice of fixed or variable interest rates. There is also downsizing protection for those wanting […]

We’ve been saying it for years – the big boys are coming! However, big powerhouse lenders have not yet fully appeared from over the horizon. For a number of years, well-known high street lenders have flirted with the idea of joining the equity release market, but most have instead allowed other, perhaps braver, lenders to […]

While Dubai is leading the way in terms of legislating for expat healthcare in the Gulf, Qatar, Abu Dhabi and others are watching and learning – that’s according to Jelf International’s director of international services, Doug Rice. He believes the pace of change in the Gulf states will continue and that some level of unified healthcare system will be introduced across the region.